Oregon Overtime Laws for Hourly Employees (2026)

The rule

	Oregon
Weekly threshold	Over 40 hours in a workweek: at least 1.5 times the regular rate (OAR 839-020-0030)
Daily threshold	None for most employers. Manufacturing establishments, canneries, driers, packing plants, and seafood processors: over 10 hours in a day, paying the greater of daily or weekly overtime
Workweek	A fixed, recurring period of 7 consecutive 24-hour days set by the employer. It can start on any day and hour, and can change only if the change is permanent and not meant to avoid overtime
Exempt salary	Executive, administrative, or professional duties plus a salary of at least the regional minimum wage times 2,080 hours, divided by 12, per month. The federal FLSA test also applies; use whichever protects the employee more
Minimum wage from July 1, 2026	$15.55 standard, $16.80 Portland metro, $14.55 nonurban counties. These rates set the state exempt salary floor from July 1, 2026
Farmworkers	Overtime after 48 hours a week in 2025 and 2026, and after 40 hours from January 1, 2027 (ORS 653.272)
Comp time	Only government agencies may give comp time instead of overtime pay
Large retail, hotel, and food chains	Employers with 500 or more employees worldwide pay 1.5 times the regular rate for hours worked in the 10 hours after the previous shift ends (ORS 653.442)
Penalties	BOLI can assess a civil penalty of up to $1,000 for each willful violation (ORS 653.256)

Weekly for most employers, daily for manufacturing

BOLI puts the general rule plainly: even an employee who works 24 hours in one day is owed no overtime if the week stays at or under 40 hours. Restaurants, retailers, cleaning companies, contractors, and most other service businesses count overtime only by the week.

Manufacturing is the big exception. Under ORS 652.020, an employee of a mill, factory, or other establishment that uses machinery to make new products earns overtime after 10 hours in a day, and the employer pays the greater of the daily or weekly amount. The same workers are capped at 13 hours in a day and 55 hours in a week (60 with the employee's written request or consent). Canneries, driers, and packing plants also pay overtime after 10 hours a day under ORS 653.265.

Pay periods do not change the workweek

Overtime is figured by the 7-day workweek, never by the pay period, so 82 hours in a two-week pay period may or may not include overtime. When a workweek crosses two pay periods, BOLI says to pay that week's overtime on the payday for the period in which the workweek ends.

Only hours actually worked count toward the 40. Sick leave, vacation, and holiday hours do not, unless a policy or contract says otherwise. Moving hours around inside the same workweek to stay at 40 is allowed; banking this week's overtime as time off next week is not. Nondiscretionary bonuses go into the regular rate under federal law, which covers almost all Oregon employers.

Scheduling rules for large chains

Oregon's predictive scheduling law (ORS 653.412 to 653.485) applies to retail, hotel, and food service employers with 500 or more employees worldwide, including chains. Among other rules, a covered employee who works during the 10 hours after the previous day's shift must be paid 1.5 times the regular rate for those hours. Most independent 10 to 30 person businesses are under the 500-employee line, but a store or hotel that belongs to a larger company counts the whole company's workforce.

Worked example: a 20-person landscaping company

During spring cleanups a crew member paid $23 an hour works four 11-hour days: 44 hours in the workweek.

Landscaping is not manufacturing, so the 11-hour days carry no daily overtime on their own.
40 hours at $23: $920. 4 hours at $34.50 (1.5 times $23): $138. Gross: $1,058.
Compare a production worker at a 25-person cabinet shop paid $20 an hour who works 12, 12, and 8 hours. The week is only 32 hours, but each 12-hour day runs 2 hours past 10, so 4 hours are daily overtime: 28 hours at $20 ($560) plus 4 hours at $30 ($120), or $680.

How to track it

For most Oregon employers the number that matters is weekly hours inside a fixed workweek. Set the company workweek in the time clock to match payroll, and remember that pay periods do not change it: a workweek that crosses two pay periods has its overtime paid on the later payday.

ClockOut stores every punch with a timestamp, totals hours by the company's workweek, warns managers when someone is projected to pass 40, and exports daily and weekly hours to CSV, Gusto, ADP, or QuickBooks. On Pro, a manufacturer can turn on the optional daily overtime rule with a 10-hour threshold for the whole company, or put only the staff covered by the 10-hour rule on a work rule set with daily overtime after 10 hours while everyone else stays on weekly overtime. A rule set follows the person, not the location, so if someone splits the week between the plant and other work, review their daily hours yourself.

Oregon overtime FAQ

Does Oregon have daily overtime?

Only in certain industries. Manufacturing establishments, canneries, driers, packing plants, and seafood processors owe overtime after 10 hours in a day. Everyone else counts overtime by hours over 40 in the workweek.

Can I give comp time instead of paying overtime in Oregon?

No. BOLI says only government agencies can offer comp time in place of overtime. A private employer can schedule fewer hours later, but the overtime from the earlier week still has to be paid.

Do sick leave or holiday hours count toward the 40?

No. Overtime is based on hours actually worked. An employee paid for 43 hours, 8 of them sick leave, worked 35 hours and is owed no overtime unless your policy or a contract says otherwise.

What salary does an exempt employee need in Oregon?

At least the regional minimum wage times 2,080 hours, divided by 12, per month, plus an executive, administrative, or professional duties test. From July 1, 2026 the minimum wage is $15.55 standard, $16.80 in the Portland metro area, and $14.55 in nonurban counties. The federal salary test applies too, so use whichever is higher.

Sources, checked September 23, 2026

This is general information, not legal advice. Rules change; check the linked source.